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Orlando Real Estate Market Predictions 2021 and 2022: Current Trends and Stats

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The Orlando real estate market — and its job market — has been booming. But can we expect this boom to continue, and how does this affect purchasing properties in the region? 

Here’s everything you need to know about relevant trends and statistics in the Orlando real estate market: 

Why Move to Orlando?

Some people have always dreamed of moving to Orlando, others not so much. No matter which camp you fall into, here are some reasons why you may want to consider moving to Orlando, Florida:

  • Weather: The Orlando metro area is known for its warm weather. Although it can get quite hot in the summer with average high temperatures above 90 degrees in August, mild winters are worth a bit of sweat. In January, the coldest month of the year, the average temperatures in Orlando are a high of 72 degrees and a low of 51 degrees. Be prepared to deal with quite a bit of rain — especially in the summer when the monthly average is between 12 and 14 days of rain. 
  • Activities: Orlando is also known for its world-class tourism and activities. People travel from all over the world to the greater Orlando area for vacation. Unlike many other cities in Florida, people don’t travel to Orlando for the beaches and resorts. Instead, they travel to Orlando for Walt Disney World — the most visited vacation resort globally with over 58 million annual visitors.
    With that said, Orlando is more than a trip to Disney World. There are also other theme parks, including Disney Springs, Universal, Seaworld, and countless water parks. It’s safe to say that you’ll never be bored in Orlando!
  • Taxes: While tickets to Orlando theme parks may not be cheap, the odds are that you can save a substantial amount of money on taxes by moving to Florida. This is because Florida doesn’t have any state income tax. And since Orlando isn’t a coastal city, homeowner’s insurance rates are usually lower than coastal Florida cities that are more at-risk to hurricane damages.
  • Jobs: According to Forbes, Orlando is the sixth-best place in the country for job growth. Furthermore, average employment in Orlando is projected to grow by 19% by 2030 — nearly double the rate of the rest of the United States. In terms of specific industries, home and healthcare services, manufacturing and construction, engineering and transportation, and computer systems design are the fastest-growing. 

Why Invest in Orlando?

Even if you don’t want to move to Orlando personally, it’s still a great place to invest in real estate. Here are some reasons why you should consider investing in this market: 

  • Orlando is the third most visited city in the U.S., only behind New York City and Los Angeles, with roughly 76 million visitors in 2019. While these numbers obviously fell in 2020, they are expected to increase in 2021 and beyond. 
  • People aren’t just visiting Orlando — they are staying there. Orlando has experienced high population growth rates and a low vacancy rate, with the Orlando Economic Partnership estimating that the region will add 1,500 each week to reach a population of 5.2 million by 2030. 
  • Orlando home prices are still considered relatively affordable compared to other areas in Florida, such as South Florida and parts of Southwest Florida, with a median home price of $312,000 in September 2021. 
  • Many experts consider the Orlando metropolitan area one of the best places to buy a rental property in 2021 based on factors including cash flow, economic growth, affordable property prices, growing population, home values, and a booming job market. 

The Orlando Buyer’s Market

Here are some important statistics and numbers that you need to know about the Orlando buyer’s market — whether you’re looking for an investment property or a primary residence: 

  • Redfin rates the city of Orlando real estate market as “very competitive,” with a score of 73 out of 100. This means that many homes get multiple offers, some with waived contingencies. The average homes in Orlando sell for around list price and go pending within nine days of listing.
  • Homes in the Orlando region sell after just 13 days on the market.
  • The sales-to-list price in Orlando is 99.4% — meaning that 99.4% of homes sell at the asking price. 
  • The average sale price of a home in Orlando was $312,000 in September 2021 — a 13.5% increase from last year. 
  • The average per square foot price of a home for sale in Orlando is $184.
  • The most affordable neighborhood in Orlando is South Semoran, with a median listing price of $130,000.
  • The most expensive neighborhood in Orlando is Lake Nona Central, with a median listing price of $599,000.
  • Housing inventory in the Orlando area is increasing after the number of homes reached a low point in April 2021. There were 1,323 homes sold in September this year compared to 1,249 in September of last year. 

The Orlando Renter’s Market

Here are some important statistics and numbers that you need to know about the Orlando renter’s market if you’re looking to purchase an investment property and rent it out: 

  • A majority of the population in Orlando rents instead of owns at 65.29%. As a result, there is a high demand for rental properties in the Orlando area.
  • About 60% of the apartments in the Orlando area can be rented for less than $1,500 a month; 26% of apartments can be rented between $1,500 and $2,000. Only 8% of apartments cost over $2,000 a month.
  • The average rent for a one-bedroom apartment in Orlando is $1,350 — a 10% increase from last year. The average rent for a two-bedroom apartment is $1,495 — a 7% increase from last year. The average rent for a three-bedroom apartment is $1,900 — a 12% increase from last year. And the average rent for a four-bedroom apartment is $2,275 — an 11% increase from last year. 

The Future of the Orlando Real Estate Market

Even though the Orlando real estate market may experience a seasonal lull in the coming months, don’t expect to see a transition toward a legitimate buyer’s market anytime soon. The amenities and attractions in the Orlando area will continue to bring in new residents at record rates. 

Instead of trying to time the real estate market, you need to accept the current conditions and make the best of them by acting in a measured and strategic manner. Prices will continue to climb, and interest rates have the potential to increase in 2022 as well. As a result, now is the best time to get into the Orlando real estate market to ensure that you’re able to get the best prices at the best interest rates. 

How To Take Advantage of the Orlando Real Estate Market

Buying in such a competitive seller’s market is easier said than done. So how can you take advantage of the Orlando real estate market during such a boom? Here’s what you need to do: 

  • Get pre-approved. If you’re looking to buy in the Orlando area, the first thing you need to do is get pre-approved by a few different lenders. It’s important to shop around to get the best interest rate possible — even a seemingly small difference of a tenth of a percentage point can translate into thousands of dollars of savings throughout the life of your mortgage. 
  • Get your finances in order. Before you get pre-approved, it’s always a good idea to conduct a financial health check. Look up your credit score and what rates you may qualify for. Try to pay off any debts that you can to improve your debt-to-income ratio. Try not to change jobs, take out any new loans, or apply for new credit cards before and during your home search. 
  • Know what you want. In a competitive market, it’s essential to be realistic regarding what you can afford to purchase in the Orlando area. Decide on your “must-haves,” but also come up with some “wish list” items. Also, decide which areas of Orlando you want to live in as there are countless different neighborhoods to consider.
  • Get a real estate agent. Before beginning a home search, you should find an experienced and reputable real estate agent. Your agent will help guide you through the home buying process and find properties that meet your qualifications. Your agent will help you write the most competitive offers possible to give you the best chance at winning your dream home. 

The Final Rundown on the Orlando Real Estate Market

Take advantage of relatively affordable home prices in Orlando and low interest rates nationwide by investing or purchasing in this booming area. For the best financing and real estate advice and information, speak to the experts at Vaster Capital or check out our real estate resources

 

Sources:

Orlando Housing Market: Prices, Trends, Forecast 2021 | Norada Real Estate

Housing Market Narrative | Orlando Regional Realtor Association

Orlando Real Estate Forecast | Central Florida Lifestyle

18 Best Places to Buy Rental Property in 2021 for Cash Flow & Appreciation | RealWealthNetwork.com

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